Truist Financial CFO Discusses Growth Strategy, Profitability, and Outlook at 2026 Bank of America Financial Services Conference

Key Takeaways

TL;DR: Truist Financial (TFC) enters 2026 with a sharpened strategic focus on accelerating earnings growth, enhancing profitability, and optimizing capital deployment. Management targets 2x+ operating leverage and earnings growth versus 2025, with a clear path to 15% ROTCE by 2027. Loan growth will be more selective, prioritizing high-ROE C&I and specialized consumer segments, while deposit growth is a top priority amid a favorable rate and competitive environment. Fee income is projected to grow mid- to high-single digits, led by treasury, wealth, and investment banking. Expense discipline remains robust, with sub-2% growth and continued reinvestment in growth initiatives. Credit quality is stable, with only minor watch areas. Truist’s scale and regional dominance are key competitive advantages.

1. Strategic Positioning & Management Focus

• Clear Strategic Direction
  • Truist is “never better positioned to win,” with a focused set of strategic imperatives.
  • The organization has transitioned from a defensive, post-merger integration phase to an “offensive posture” centered on growth and profitability.
• Earnings Growth & ROTCE Targets
  • Management is committed to accelerating earnings growth and improving profitability.
  • Targeting 15% ROTCE by 2027.
  • Expecting to grow at “twice the rate plus” versus 2025, delivering increased operating leverage.
• Execution Confidence
  • Strong internal confidence in achieving 14–15% ROTCE in 2026 and 2027.

2. Loan Growth & Mix

• 2025 Loan Growth Outperformance
  • 2025E loan growth was initially projected as low-single digits; actual end-of-period growth reached high-single digits, with “high-quality growth” in 2H25.
• 2026 Loan Growth Strategy
  • 2026E loan growth will be more selective, focusing on “really, really profitable growth.”
  • C&I and middle market portfolios expected to grow at +4–5% or higher.
  • Lower-ROE consumer segments (e.g., indirect auto, mortgage) will be deemphasized.
• Specialized Consumer Segments
  • Growth prioritized in higher-profit consumer businesses such as Service Finance and Sheffield.
• Geographic & Industry Focus
  • No single market dominates; expansion in growth markets (Philadelphia, Nashville, Atlanta) and industry specialization (healthcare, fintech, payments) are key drivers.

3. Deposit Growth & Funding

• Deposit Growth as Top Priority
  • Deposit growth is a central focus, with strong momentum in 2H25, especially Q4, exceeding typical seasonality.
• Retail & Wholesale Initiatives
  • Retail: Emphasis on net new households, premier segment, and cross-selling investments.
  • Wholesale: Enhanced incentives and investment in treasury management products.
• Competitive Backdrop
  • Truist operates in highly attractive, competitive markets, but management remains confident in the 2026 deposit growth outlook.
• Rate Environment
  • Lower rates and the end of QT are expected to provide a more favorable backdrop for deposit growth in 2026.

4. Net Interest Income (NII) & Margin (NIM)